Aug. 19, 2016
Ralph Acampora, and Harry S. Dent Jr.
- The gold market follows the commodities cycle , which continues to advance. Every investor should allocate 5-10% gold / silver to to their portfolio to improve investment diversification.
- Investor's appetite for the PMs continues to improve, in the wake of news of huge losses related to security issues in the Bitcoin encryption methodology.
- The positive trend in US equities is directly correlated to negative rates - investors have few options other than chasing risk to boost expected returns.
- Weakening economic conditions will persist, which could lead to a new round of QE4 and subsequent inflation.
- Given the startlingly muted economic fallout in the UK following the Brexit, Spain, Portugal and Italy may exit the EU, improving the prospects for PMs.
- His outlook on the PMs metals is positive; gold could advance above $1,400 per ounce.
- Nearly 50 years ago, Stevenson and Bear (1970) outlined an alternative to the EMH; sometimes display years of long-memory (trends).
- Our guest highlights the importance of key investing factors: price, time and sentiment, culminating in a fusion investing approach.
- Fusion investing involves combining economic themes, fundamentals and technical analyses.
- Reminiscent of the chess match between Russian Grandmaster Gary Kasparov vs. Deep Blue, the fusion approach yields a nearly invincible approach.
- Ralph Acampora prefers the contrarian perspective, noting he's "very excited, because no one else is..."
- He cannot recall a time in his 50 year trading tenure, where so many investors were weary of US stocks.
- Such investor nervousness typically coincides with favorable markets. The shares index breadth remains highly bullish, suggesting an impending "meltup."
- Case in point, the price rebound following the infamous Brexit announcement indicates substantial underlying strength / accumulation.
- The financial shares continue to underperform, presenting an enticing valuation opportunity.
- Our guest leaves the listener's with sage advice on US equities, "Stay bullish."